Global Entertainment Corporation Reports Revenue Growth of 160.1% in Second Quarter Fiscal 2007.102.6% for Six Months Ended November 30 PHOENIX -- Global Entertainment Corporation (AMEX AMEX See: American Stock Exchange : GEE) - a company engaged in sports management, multi-purpose events and entertainment center and related real estate development, facility and venue management and marketing, venue ticketing and brand licensing, today reported second quarter of fiscal year 2007 revenue increased 160.1% to $12,833,023 for the three month period ended November 30, 2006 compared to revenue of $4,933,897 for the three month period ended November 30, 2005. Net income for the second quarter of fiscal 2007 was $117,526 or earnings of $.02 per share on a diluted basis versus net income of $297,894, or earnings of $.05 per share on a diluted basis for the comparable period in fiscal 2006. Revenue for the first six months of fiscal 2007 increased to $16,484,941, a 102.6% increase from revenue of $8,138,670 in the first six months of the prior fiscal year. A net loss of $821,134 or $.13 per share on a diluted basis was reported for the six-month period ended November 30, 2006 compared to net income of $146,610 or $.03 per share on a diluted basis for the second quarter of fiscal 2006. The revenue growth in the second fiscal quarter for the Company as a whole and within each of its subsidiaries clearly demonstrates the planned interaction and interrelationships between our subsidiary companies. We are observing how the activities in one area enhance the revenue generating opportunities in the others. For example, late in the second fiscal quarter, three new multi-purpose events centers were completed in Rio Rancho, New Mexico Rio Rancho, (Spanish: Río Rancho) is a suburb of Albuquerque,and is the largest city and economic hub of Sandoval County in the U.S. state of New Mexico. It is the fourth-largest and fastest-growing city in New Mexico. As of the 2000 census, the city population was 51,765. (Santa Ana Star Center Santa Ana Star Center is an 8,000-seat multipurpose arena in Rio Rancho, New Mexico, a suburb of Albuquerque. It is home to the New Mexico Scorpions of the Central Hockey League and a possible expansion team in af2, a division of the Arena Football League. ); Prescott Valley, Arizona Prescott Valley is a town in Yavapai County, Arizona, United States. The population was 23,535 at the 2000 census. Prescott Valley was the seventh fastest-growing place among all cities and towns in Arizona between 1990 and 2000. (Tim's Toyota Center Tim's Toyota Center (originally built as the Prescott Valley Convention & Events Center) is a 5,100-seat multi-purpose arena located in Prescott Valley, Arizona. Built in 2006, it is home to the Arizona Sundogs Central Hockey League team and in 2008 will be home to an ); and Broomfield, Colorado (Broomfield Event Center External links
Current arenas in the NBA Development League ). Each of these facilities contributed to the increase in revenue for our project management division (ICC ICC See: International Chamber of Commerce ). In addition, with the opening of the new facilities the Company also realized growth in revenue associated with facility management (Encore), licensing, advertising (GEMS) and ticketing (GetTix). Each of these additional revenue sources is based on multi-year agreements to provide specific services. Finally, since the major tenant in all three venues is a Central Hockey League
The Central Hockey League (CHL) is a mid-level professional hockey league, owned by Global Entertainment Corporation. (CHL CHL crown-heel length. ) member team there is additional on-going revenue through Global's joint operating agreement Any contract, agreement, Joint Venture, or other arrangement entered into by two or more businesses in which the operations and the physical facilities of a failing business are merged, although each business retains its status as a separate entity in terms of profits and with the CHL. "The dramatic increase in revenue for the quarter is spread across the full spectrum of our multiple subsidiary companies," said Richard Kozuback, president and chief executive officer. "Our performance has shown how we are able to flow revenue and grow based on our multi-tiered, but integrated, platform of services. As events center projects are developed with follow-on agreements that include an array of our services, we have put in place a structure to capitalize on these opportunities. To maintain our growth, we continue to hold discussions with a number of municipalities throughout the country regarding potential market opportunities for our turn-key events center concept." Mr. Kozuback added, "To further enhance our efforts in building critical mass as a national company serving mid-market communities throughout the United States, we continue to invest in our infrastructure, including investment in our newest subsidiary Global Properties I. This real estate development division has put us in a position to capitalize on all the real estate development activities that are part of our events center development and take place in surrounding entertainment district projects." Kozuback concluded by saying, "As a relatively young company, we have yet to realize the full benefits of our business planning, however we believe the strategy we have in place provides tremendous upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar for our shareholders." Visit our web sites: www.globalentertainment2000.com www.centralhockeyleague.com www.coliseums.com www.Cragar.com www.GetTix.net Global Entertainment Corporation is an integrated events company focused on mid-size communities that is engaged through its seven wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , in sports management, multi-purpose events and entertainment center and related real estate development, facility and venue management and marketing, venue ticketing and brand licensing. The Western Professional Hockey League The Western Professional Hockey League (abbreviated WPHL) is a defunct mid-level professional ice hockey league. It operated in the United States from 1996 to 2001, with teams in the southern United States, mainly Texas. , Inc, through a joint operating agreement with the Central Hockey League, is the operator and franchisor of professional minor league hockey teams in nine states. International Coliseums Company serves as project manager for arena development while Encore Facility Management coordinates all arena facility operations. Global Entertainment Marketing Systems pursues licensing and marketing opportunities related to the Company's sports management and arena developments and operations. Global Properties I in correlation with arena development projects works to maximize value and development potential of new properties. Global Entertainment Ticketing is an in-house ticketing company for sports and entertainment venues. Cragar Industries is the licensor for its nationally recognized, branded products CRAGAR[R], TRU-SPOKE[R], CRAGAR S/S S/S Signs & Sx S/S Staples & sutures [R] and STREET PRO[R]. Certain statements in this release may be "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements may include projections of matters that affect revenue, operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. or net earnings; projections of capital expenditures; projections of growth; hiring plans; plans for future operations; financing needs or plans; plans relating to the company's products and services; and assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking information. Some of the important factors that could cause the company's actual results to differ materially from those projected in forward-looking statements made by the company include, but are not limited to, the following: intense competition within the sports and entertainment industries, past and future acquisitions, expanding operations into new markets, risk of business interruption, management of rapid growth, need for additional financing, changing consumer demands, dependence on key personnel, sales and income tax uncertainty and increasing marketing, management, occupancy and other administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . These factors are discussed in greater detail in the company's Annual Report on Form 10-KSB for the year ended May 31, 2006, as filed with the Securities and Exchange Commission. [TABLE OMITTED] [TABLE OMITTED] |
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